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How AI is changing startups

AI makes development faster while increasing competition. What changes when internet projects become easier to build, distribute and copy?

AI makes development faster while increasing competition. What changes when internet projects become easier to build, distribute and copy?

AI dramatically lowers the cost of a first version

AI can now help with almost every early stage of a project: structuring an idea, researching a market, preparing interview questions, drafting copy, generating interface options, writing and debugging code, creating database structures, testing, documentation, translation and support. For a small experiment, a founder can often build a landing page or prototype without hiring a development company.

That does not mean serious software has become a few prompts. Long-lived systems still need architecture, security, integrations, data quality, testing, monitoring and maintenance. AI reduces the cost of building; it does not remove engineering judgement.

When everyone can build, competition increases

Ideas that once stopped at a €50,000 development estimate can now reach the market in days or weeks. The same is true for competitors. Technical execution becomes cheaper, so choosing the right problem, understanding a narrow audience and reaching that audience become more valuable.

The result is a strange combination: it is cheaper to build and often harder to sell. AI can create ads, emails, videos and SEO content, but everyone else can create more content too. Distribution, trust and a clear reason to choose one project over another matter more, not less.

SEO changes, but does not disappear

Search engines increasingly answer questions directly, so ranking does not guarantee a click. The basic work still matters: a technically accessible site, clear structure and genuinely useful original content. At the same time, more people will use general AI interfaces for tasks that previously required several separate websites.

A weak AI business is only a wrapper

Using another company’s AI infrastructure is not automatically a problem. The weak model is when almost all value comes from forwarding a user prompt to a public model and displaying the answer in a nicer window. If the user can reproduce 80% of the result with one good ChatGPT prompt, the project is fragile.

A stronger model combines AI with something harder to copy

More defensible projects combine AI with specialised workflows, proprietary or accumulated data, integrations that perform real actions, human expertise, physical delivery, a community, brand trust, regulation, or a distribution advantage. Duolingo is a useful example: generative AI sits inside an existing learning system with curriculum design, progress data, gamification, audience and subscription economics.

A good question is not “Can we add AI?” but “Does AI materially improve the customer’s result or make a previously uneconomic project possible?”

A practical AI risk test

Before building, ask: Could a general AI model add our main function tomorrow? What do we own besides access to the model? Does the project know something a general model does not? Does it take real actions, or only generate answers? Does it improve from our own data? Do we have a distribution channel or trusted relationship?

AI reduces building risk while increasing market risk. The opportunity is enormous, but a durable company still needs something more than generated code and a prompt.